Author. 




Title 



aassL.U.2823. 
Book_»..j[_..5r- 



Imprint- 



16—17372-1 







^^ f) ^^-'j«'' 



ii#%4' 












1 4 .s ■»'r "iV 



"To Secure Efficiency and Economy in Govcmmtnt" 

DETROIT BUREAU OF 
GOVERNMENTAL RESEARCH, Inc. 

100 GRISWOLD STREET 



REPORT 
ON 
GSNTRAIIZBD PUEGHASIKG 
BQA.RD OF EDUOATION 



Prepared "by 

USTROIT BUREAU OF GOTERHMSlfTAL RBSaARCH, Ino , 

1916 



^' fif D. 






•.v'^ 



FOREWORD 



This report on the purchase, stor3,ge, and 
distribution of supplies of the Board of 
Education is one of a number prepared by 
the Detroit Bureau of GoTerrmental Research 
covering the several activities of the 
Educational Department. This survey is 
being made in accordance with a resolution 
passed by the Board of Education in May, 
1916, and was prepared by Mr. Arch M. Mandel 
of the Bureau staff, who has been in charge 
of all Bureau work in the Educational Depart- 
ment. 



- Contents - 

REPORT ON CENTR.A.LI2ED PURCHASING 
Simimary of Recommendations 

Centralization of Purohcsmng 



Page 



Quantity Buying 5 

Scientific Supplies 5 

Groceries 7 

Building Supplies and lilaterials 7 

Educational Supplies 7 

Standard Supplies and Standard Specifi- 
cations 9 
Standardization of Supplies 9 
Standard Supply List 9 
Standard Specifications 10 

Inspection of Supplies 14 

Detailed Procedure in Pixrcliasiag 15 

1. Annual Estimates of Needs 15 

2. Proposals for. Bids 16 

3. Contract for supplies 18 

4. Prices secured 18 

5. Issuing orders 18 

6. Checking use of Supplies 20 

Payment of Bills 21 

Central Stores 22 

Organization 22 

Deliveries to Schools 24 

Stores Records 25 

Repairing of Equipment 25 

Repairing Books 25 

Repairing other equipment 26 



• 



r'.J. 



SOMRfARY OF REGOJ.mEICDATIO])JS 
It is recommended: 



1. That the position of Purchasing Agent and Store- 
keeper of the Board of Education be created, the 
functions of the encumbent of this position to 

be the purchasing of all supplies for all depart- 
ments of the Board of Education, and responsi-^ 
bility for storing and issuing supplies to the 
various branches of the Board of Education. 

2. That the varieties of supjjlies bought by the 
Board of Education be reduced to a minimum by 
standardizing the grades and qualities of supplies 
used , and that standard, definite, and technical 
specifications for all supplies be prepared and 
employed in the purchase of such supplies, 

3. ThAt wherever found more-opracticable, supplies 
be bought upon sample, but, unlike the present 
method, it is recommended that the purchasing 
agent choose a standard sample and receive bids 
using his sample as a standard. The present 
plan of allowing each bidder to furnish his "own 
sample, without reference to any standard Sample 
of the Board of Education, tends to eliminate 
real competition because vendors do not bid upon 
the Same definite article* 

4. That quantity buying be extended to include all 
supplies. This can be done more easily by classi- 
fying supplies according to their trade names 
rather than according to the use to which they 
will be put, and submitting proposals for bids 

to vendors upon schedules classified in the pro- 
posed manner. At present, proposals are sent 
out for high school supplies, educational supplies, 
kindergarten, drawing, manual training supplies, 
etc. These various schedules contain many sup- 
plies and materials in common, which, if com- 
bined on one schedule, would tend to reduce ■- 
prices. 

5. That a standard supply list of all articles to 
be used in the schools be prepared and published 
by the Board of Education as is nov7 being done 
with reference to text books in the -srimary and 
grammar grades; that this list be adhered to 
strictly by all; persons making requests upon the 



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b 9! 



Xii HBl 



- b - 



purchasing agent, no de'giations "being permitted 
except by approval by the Board. 

6. That the Board of Education discontinue the 
practice of approving those orders for supplies 
and materi&ls for which contract"© have been let 
for the qhole year. This v/ill not only Save the 
time of the Board, but will expedite purchases 
and will save a needless expenditure of money 
for prinfing the adoption of such orders in the 
proceedings of the meetings of the Board of 
Education. 

7. That invorder to prevent overdrafts of appro- 
priations, no purchase order be placed ujatil the 
accountant or business manager certifies that 

at the time the order is placed there is an 
unencumbered balance in the funds, to which the 
purchase is to be charged, adequate to liquidate 
the liability incurred by the issuance of the 
order. 



That to introduce further economies in the 
operation of the store room, deliveries to schools 
be made once a month instead of once a week. It is 
probable that this procedure will either result in 
the elimination of one of the tviTO vehicles for 
deliveries now being- used, or else allow the use 
of these vehicles,- the motor truck and the horse 
and wagon- for hauling purposes for the chief 
engineer. 



Improvements in stores records and in the form .and 
procedure being used for requisitioning supplies 
and placing orders are now being taken up with 
*he business manager. 



CENTRALIZATIdJ OF PURCHASING 

Centralized purchasing means the c on centra ti en' 
of responsibility for buying supplies and materials in 
one person. This entails in the last analysis responsi- 
bility upon the part of the purchasing agent for furnish- 
ing the best commodities for the purpose at the least cost,, 

Altho the rules of the Board of Education did 
provide for centralized purchasing, yet it is only since 
the appointment of a business manager vd th full authority 
over the business transactions of the Board that these 
provisions can be made completely effective. The business 
manager is now able to overcome the obstacles to centra- 
lized buying which existed when the responsibiihity was 
divided between the Secretary and the Supervisor of Prop- 
erty, obstacles of which the Secretary was cognizant at 
the time. 

By including in his purchasing scheme the buying 
of supplies and materials for use in the maintenance of 
property, which heretofore were bought by the Supervisor 
of Property, and the buying of scientific supplies now 
being bought by the headS of scientific departments in the 
various high schools, the Business Manager will have all 
purchasing for the Board of Education centralized. 

In order that centralized guying may be a fact, 
it is necessary that some one person be responsible for 
all goods bought. It is true that the Business Marager 
is charged among other duties with purchasing, storing and 



- s - 

distributing all supplies and materials used by the 
Board of Education, but inasm^ich as the Business Mana- 
ger is charged v/ith responsibility for all the business 
affairs of the Board of Education, it is impossible for 
him personally to perform the functions of a purchasing 
agent. 

At this point it is desired to state that a 
purchasing agent should be more than a clerk whose duties 
are limited to the mechanics of purchasing, i, e. senaj. n^ 
out requests and ordering supplies. A purchasing agent', -^ 
responsibilities and duties shoLild include, in addition 
to the above: 



1, A knowledge of responsible firms 
handling commodities used by the 
Board of Education. 

2, Keeping in teach v/ith the market 
both as to prices and as to latest 
improvemai ts in commodities and 
equipment used by the Board thru a 
continuous collection of trade cata- 
logs and thru intercourse v;ith vendors. 

3, Preparation of standard aad definite 
specifications for all commodities 
being purchased. 

4, Buying best supplies or material for 
the purpose 

5, Insuring deliveries of goods as per 
order and specifications 



Up to and including the present time, the 
Board of Education has no purchasing agent in the full 



;-^.i.£V;ifS' 



- 3 - 

sense of the word. Purchasing is divided among the 
requisitioning departments, the clerical farce in the 

Business Manager's office which perforiasthe mechanical 
work attendant upon huying, and the committees of the 
Board. It is difficult to say which one of these three 
does the bulging, but if the title of purchasing agent 
were applied to any one persoia new, it would have to be 
applied to the chief stenographer in the Business Manager''' 
office, altho the committees actually select the sup;olie.- 
bought, 

J'or example if the Idrector of I.iar.ual" Training 
needs supplies or equipment, he forvmrds his requisition 
ancl specifications after approval by the Superintendent, 

' to the Business Manager's office v/here propos^:.is for bids 
are sent to vendors and vihere returned bids are tabulated 
and prepa.'^ed for the proper committee under the supervision 
of the chief clerk of the stenographic division.. The com- 
mittee on test books and course of study reviews the bids 
and with the advice ot "'-he Director of Manual Training, 
who is present and awards the contract subject to approval 

, by the whole Board, Occasionally, actual samples are 
placed before the committee for its inspection. In bulging 
school desks, the committee on supplies and janitor's, with- 
out any advice as far as could be learned, reviews the 
bids and sample deslcs and se-lects the type it thinks best, 
During all this time reqmaitions do not go thru 



- 4 - 

the hands of a skilled purchasing agent whose sole busi- 
ness it is to acquaint himself with terms and discounts, 
with the character of firms supplying the particular com- 
modity required, and with all those points which go to 
make up skillful "buying* Ordinary commercial experience 
shows that efficient buying cannot be done mechanically 
by merely preparing requisitions and proposals for bids. 

It is true that the Business Elanagef possesses 
full authority for purchasing, feut it cannot be exptiotro. 
that he attend directly to the numerous duties attendant 
upon a purchasing agent *s position. 

It is therefore recommended that a purchasing 
agent be designated to whom the Business J.lanager can dele- 
gate the functions enumerated above; that the responsibil- 
ity for buying be taken out of the Department of Stenog- 
raphers. 

Inasmuch as the Board of Education does all of 
its principal buying in the spring and summ.er, the duties 
of a purchasing agent will be comparatively light during 
the rest of the year. But as there is need for a store- 
keeper the year around, it is recommended that the duties 
of purchasing agent and storekeeper be included in Q3fl§ posi 
tion,a step which may involve merely extending the duties 
of the "chief clerk" now employed in the store room. This 
clerk's present duties vjlll be discussed 5^n the section on 
"stores. " 



V.Q 






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ajonecttf; 



- 5 - 

The two great benefits accruing from such organi- 
zation are: 

1. Making one person answerable to the 
Business Manager for the T^TO-per buy- 
ing of all supplies and materials, 
for furnishing supplies when required, 
and .for having on hand at all times 
common supplies used >: uhe Board of 
Educatiom* 

2, Relieving from purchasing duties and 
•onereby saving the time of heads of 
Educational and other branches. 

QUANTITY BUYING 

Centralized purchasing, altho a prerequisite, 
does not autnmatically result in qua.ntity buying. The 
Board of Education buys in large quantities, entering into 
price agreements for the bulk of its supplies and materials 
to be used for a school year^ but does not carry this prac- 
tice to the extent possible under the centralized purchas- 
ing system provided by the rules of the Board. 

Reference is made bo the buying of scientific 
supplies, groceries, supplies and materials used in the 
maintenance of buildings, and- to the purchase of educational 
supplies under arbitrary classification such as High School, 
Elementary School, Kindergarten, Manual Training, etc. 
Scientific Suppli es 

Supplies for use in the scitotific departments 
of the High Schools are bought by the hea[ds of such depart- 
ments in each High School, after requisitions are approved 



- 5 - 



by the principal. 



Table Showing Bids Upon Scientifio Supplies 



Por 1915 - 1917 



Mrm Bidding 



Central High School Eimer & Amend 

Arthur H. Thomas Co 
Michigan Drug Go 

Cass Technical High Bausch & Lomb"^ 
School J. T. Baker 

Eimer & Amdnd 
Arthur H.TBo-rt.>s no 



Uorthv/estem High E.H. Sargent &Go. 

School Scientific Mater igels 
Co. 
Central Scientific 
Co. 

*Successful bidder. 

It will be noticed that only two firms appGvar 
more than anee in the bidding, a fact v/hich seems to bear 
out the supposition that it is natural for different per- 
S30ns to develope the habit of trading vifith specific firms. 
However, more important than this circumstance is the 'fact 
that individual buying upon zhe part of each high schooa 
reduces the quantities submitted for bids to a minimum. 
It is probable that the prices for scientific supplies a,nd 
apparatus could have been reduced if one bid would have 
been obtained for the collective tyaantities required in 
all high schools and if all the firms listed above had been 



Appa* 
ratus 


Chemical 


674.13 
674.20 


192.02 

211.7" 


870.77 

967.40 

not com- 
plete 


2b^-.- ^ 
317./^ 

- 329.69 


254.99 




239.13 




280.34 





- 7 - 

given the opportunity to bid upon the collective quantitj. 
Groceries 

During the year 1915-16 the amaint spent ior 
groceries v/as .$8^523.31, These purchases are made as needed 
from local stores hy the teachers in domestic science, pre- 
voeational, cripple and open air classes. Since most of 
the articles bought are perishable, there can be no buyinp; 
in large quantities, but it r/ould be possible to buy ir. 
bulk vThatever canned goods is consumed. The amount sy.in: 
for such goods could not be learned. 
Building Supplies and Materia ls 

In the division oi maintenance of property the 
only supplies bought in tjaantity are paints, oils, varnisheEr 
and paint brushes for which the price ggreements are en- 
tered into at the beginning of each fiscal year. Purchasing 
for this branch of the work is done thru the office of the 
Chief Engineer, the clerk: in t'le engineer's office acting 
as purchasing agent. 
Educational Supplies 

These are classified according to the educatim- 
al department in which they are used, as elementary school , 
high school, kindergarten, drawing, manual training and 
special room supplies. Schedules are prepared and proposals 
sent to vendors under this classification: 

Such classification is arbitrary from a buying 
point of view and is created for bookkeeping convenience 



only. The convenience of the vendor is ignored because 
he must search thru several proposals to find the aiticles 
upon' which he wishes to submit a bid, and more important 
than this is the fact that his bid upon each proposal is 
based upon only a partial quantity of the article used by 
the Board of Education, To illustrate: Pens, pencils, 
paper, blotters, scissors and other commodities appear on 
more than one proposal, resulting in individual bids for 
these articles as they are listed on the elementary schoo 
high school, manual training, and other schedules respecti- 
vely. Even tho the articles in quastion are not specific- 
ally the same in all instances, it is believed that the 
vendor will consider the gross quantities of the general 
article listed v^hen submitting his bid. It may be possible 
for the vendor to do this even under the present system of 
preparing: schedules, but since the various proposals are 
sent out on different days such action on the part of the 
vendor does not seem probable. 

While none of these deflections from, quantity 
buying, nor the amount of maiey involved, are momentous, it 
seems decidely worth v;hile to introduce at this time a syster 
vrhich virill facilitate bidding by vendors, and which may re- 
sult in the saving of money thru lower bids. It is recom- 
mended therefore, that one comprehensive proposal schedule 
be prepared for each class of supplies, the classification 
being based on trade usage* For example, stationery, and 



H.id" I J 



- 9 - 

office supplies including pens, pencils etc ;70uld. -under 
this classification comprise oiie schedule instead of being 
divided according to the departnent which will use the 
supplies. 

STANDARD SUPPLIES AND STArTDARD SPS£>IFICATI0ITS 
Standardization of Suppl ies 

Except in a few instances the Board of Education 
has standardized the grades of supplies used. The excep- 
tions ncted particularly are pens, pencils, letter heads, 
paper fasteners, common supplies used "by all departments, 
For instance letter heads of different sizes and styles, 
and twelve different kind of pencils are used, 

y/hile the above comments may seem of minor impor- 
tance, it is believed adTCisable to call attention to the 
matter of standardization of supplies because the amount 
of money to be expended will increase from year to year, 
and there is always danger of catering to individual pre^ 
ferences existing in requisitioning departments* 
Standard gup:oly List 

It is recommended that a standard Supply list 
similar to the one now used for text and reference books 
fot" *he elementary schools, be established for all suppliee 
for all scljools, such list to include in addition to educa- 
tional supplies, text and reference books for high schools, 



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- 10 - 

magazines and periodicals; that a published list be sent 
to all principals and supervisors, and that no deviations 
from this list be permitted. Changes in this list should 
be made upon the order of the Board* 
Standard Specifications 

The weakest spot in the purchasing system of the 
Detroit Board of Education is lacli of standard and defi- 
nite specifications for supplies bought, Supp!l.ies for th'- 
schools with the exception of coal, desks and special 
equipment such as shop benches, lathes, physical trainj.nr^ 
apparatus, at c!Stra,are bought on trade names or equals 
without designating definitely the specifications of the 
article to be purchased. The vendor is required to submit 
a sample virith w^ch bid, and when a bid is accepted the 
sample accompanying such bids remains wi th the Board during 
the existence of the contract. 

The "or equal" clause is a recognition of the 
fact that discrimination should not be practiced. However, 
as a factor for efficient purchasing, its presence is 
objectionable. By inserting this "or equal" clause the 
Board of Education assumes the burden of proving that the 
sample submitted by a bidder is not equal to the article 
specified, by trade name. A glance at the proposal blanks 
sent to vendors by the Board of Education reveals lists 
^ articles specified in such a manner that almost any 
grade of commodity may be proposed by the vendor. A lack 



- 11 - 

of definite specifications is unfair to vendors ■because 
it fails to provide a standard basis for bidding, thereby 
removing real competition. The following variations in 
quotations on apparently the same articles must malce it 
clear that only failure on the part of the vendors to 
know specifically What the Board of Education wants, and 
the consequent failure to bid on the same article are 
responsible for such wide differences in bids. 

Table Showing Variations in Quotations 



Specification Bo, Bids Price Variance 

Selected in Price 

Crayon-Colored 

36 gross, Sandpsky or 

equal, any color, per |0o40 to 

gross 7 $0.40 $3.08 



Journals 

S-doz. Richmaaid&Backus 
#61-150-J or equal 
per doz. 



Thumb Tacks 

100 boxes, #2645, 100 in 

box 3/8" 

Rubber Bathing Caps 
24 doz, per doz. 



Brushes " Sweeping 

50 doz. 14" Block 

4" Bristle, per doz. 10 

Interior Finish Varnish 
200 gal. more or less 
spar and high grade 
in 5-gal. sealed cans, 
per gaS* 12 



9.00 


$9.00 to 
$30,00 


15.00 


$15.00 to 

$45,00 


2.25 


.90 

to 

4.00 


11.00 

Complete 

14.00 


6.75 

to 

27.00 


I. 95 
2.35 


1.21 

to 
2,35 



\jJi_8£. L3iiiJ:y.'5ii§..-^i£ 



beioLoO 



.soi> 'x 



00X,<i^dS.^.B3xp<S 001 









dQ .■: :^. I ,Lb-^ OOS 



- 12 - 

Such elastic basis for bidding does not mean that 
the Board of Education is paying too much for what it gets, 
now that it is buying an article which will not serve the 
purpose for which it is intended, but it does mean that 
that competition is eliminated. Hot only is the lack of 
definite specification unfair to the vendor but it may provp 
costly to the Board of Education. To illustatate the point, 
the manner of buying engine oil and-painters' supplies iroy 
be used . ^s examples. In buying the former, the propoaa:- 
calls for 1200 gallons of "engine oil" in fifty gallon lo",. 
The price quoted per gallon ranges from 17^ to SO^f. The 
17/ quality was chosen. The use of ' this oil ; during the 
year seems to have proven that it was unsatisfactory, be- 
caBse of its poor quality. The employment of technical spe- 
cifications in buying this oil would probably ruled out oil 
of such pcbor quality, and would have permitted of analysis 
to have been made at the time the bids were submitted, so 
that the Board of Education might know what grade of engine 
oil it was getting for its money. Without any definite 
standards, which it is assumed \'^;ould have been based upon 
Satisfactory experience, an analysis would have been prac- 
tically useless. The proposal f or buying I-Vhite Le^d calls 
for five ton strictly pure. The prices per hundred weight 
bid -were |9,25 to ^9.50. The more expensive was chosen, and 
properly so under the cireums-jsances, because the experience 
with this particular'- quality had proven successful. Jt 
i.<= entirely probable, however, that a satisfactory quality 



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* a» J' v" X iW£ 6(i & V £i.i 



*ia j^exiv 



afc^ouiji' 



.(i%oxv joi,.>ixi 



- 13 - 

could have besn obtained at the lower price, but there 
was no y/ay of knowing this, because there viere no standards 
set up by the Board of Education upon which an analysi s 
might have been based. 

The proposals for Interior Finish Varnish called 
for 200 gallons "Spar and High Grade" in 5 gallon sealed 
cans, on which twelve bids were received, ranging from 
|l.2l to $2.35 per gallon. The prices selected were $1.95 
and $3.35 per gallon. It is highly probable that the 
selection of the varnish at these prices resullted in the 
most efficient purchase, but on the other hand it is also 
possible that a lovrer price v/ould have furnished equally as 
satisfactory an article. Again, a standard set up by the 
Board of Education could have been used as a basis for 
buying a lower priced article. 

To remedy these defects it is recommended; 

1. That the purchasing agent select the one 
article which will serve the pisupose 
for which it will be used, nei;^her the 
most expensive, nor the cheapest, biit 
the most suitable. 

2. That the purchasing agent, after the 
article has been selected, prepare defi- 
nite specifications, technical v?herever 
possible, describing the article fully, 
so that the or equal clause may be 
eliminated. 

In those instances V7here it is more advisable 

to buy according to sample, it is "ecommended that the 

purchasing agent of the Board of Education furnish a 

standard sample of the article desired and that vendors 



bBl.B&B 



- 14 - 

submit samples of their own with their bids to be compared 
m th the standard sample of the Board of Education, At 
the present time the Board does not set up a standard, 
merely choosing from among the different varieties of sam- 
ples submitted by vendors. 

lUSPECTIOM OF SUPPLIES 

All supplies delivered to the store house are 
inspected as to quality and quantity by the chief clerk 
or his assistants* The supplies and equipment sent direct 
ly to the sdhools are inspected by the principal, "ohe 
engineer or other responsible persons. In general, the 
inspection is done by the person from whom the requisition 
originated: the director of manual training inspecting the 
equipment he requested, the direetol- of physical training 
doing likewise, the heads of the scientific departments 
in the high school inspecting the suppliee they requested. 
The dats upon which the inspector bases his inspection is 
a memorandum or invoices accompanying the goods* The 
inspection of coal takes the form of an accurate test and 
ana,lysis. 

The Effectiveness of the inspection of supplies 
depends upon the definiteness of the standards set up, and 
to that extent depends upon good specifications. It is 
therefore recommended that in order to m.ake inspection 
more effedtive, standards be adopted which will aid the 



I'''-;: 'tijDr 



•'i<^ni 



- 15 - 

persnn inspecting supplies, materials or equipment in 
determining accurately whethef or not the commodity de- 
livered is of the quality ordered, 

Vi/herever possible, as in the aase of coal, paints, 
oil, varnishes, et cetra, technical standards should be 
adopted which will peiniit inspection to take the form of 
accurate chemical tests and analysis. In every instance 
it is suggested that specifications be absolutely definjte 
describing the article minutely. 

Consideration is given the (fact that in many 
instances the quantities bought are so small that elaborafc ; 
specifications and tests are not worth while. 

There is no inspection of supplies and materials 
sent to repair jobs, or at least there is no indication 
of any inspection. The greater part of such materials 
is ordered by phone to be delivered by the vendor to parti- 
cular jobs. The clerk in the office of the Chief Engineer 
takes it for granted that deliveries are satisfactory 
unless he hears to the contrary, but since the men on a 
repair job have no copy ox a requisition or order they do 
■not know what quality or quantity should be received and 
cannot very well check deliveries satisfactorily. 

DETaiLED PROOBDURE IN PURGHASIiyG 

1. Annual Estimate s o f Weeds 

I II , 11 1 I ,.i 

In ISay of each year^ after the annual appropria- 



- 16 - 

tions have been made, the estimated needs of the various 
supplies for the follov/ing year are sent to the Business 
Manager in whose office bids are secured, tabulated and 
prepared for consideration by the Board of Education. The 
sources of these requests are: 

1. Supervisors of Manasal Training, 

Drawing, Kindergarten, Ph^tsical 
Training, Music, 

2. Superintendent of Schools 

3. Assistant Superintendent in charge 

of the special schools. 

4. Clerk of the Supply Department 

5. Principals of High Schools 

The SuperintendOiit ap^^roves all supply liste of 
an educational nature and prepares the list of text, sup- 
plemental, and reference books. To estimate the amo-unt of 
educaticnal supplies needed in the element :'ry schools and 
the amount of engineers and janitors' supplies, the clerk 
of the supply department uses the pre'gious years' estimates 
as a basis and prepares his list accordingly. In high 
schools, the principals are allotted a definite amount of 
money by the Superintendent, whicn feioney is expended by the 
principals as they see fit, 
2. Proposals for bids. 

Eleven schedules, classified according to the 
departments using the supplies, are prepared Qontaihing 
the specifications for each supply and the quantity it is 
estimated will bd bought during the ensuing year. 



- 17 - 

Sids are solicited upon these schedules from a 
list of firms in Detroit, or elsev^rhere, secured by the 
Business Manager, 143 firms for janitors and engineers' 
supplies, 84 for ed.ucational supplies, etc. In addition 
to this, in order that there be no suspicion of discrim- 
ination, an advertisement is inserted in each of the daily 
joapers. 

Advertising cost approximately ^250 for the ye?'.\ 
and is of doubtful value. During the whole year not more 
than six firms to v;hom proposals were not mailed submittS' 
quotations. It is recommended that advertising in the 
newrspapers for bids be discontinued. 

Suggestions as to tha preparation of proposals 
for bids were presented in a foregoing section of this re- 
port. The suggestions call for - 



1. Discontinuance of the arbitrary and 

artificial classification of supplies 
now used for biddins: purposes. 

2. Adoption of a classification of sched- 

ules or proposi/is for bids by natu.re 
of the supply or by trade name. 

3. Submitting to vendors those proposals 

in which they are interested, thus 
relieving them of the necessity of 
searching thru the entire list of 
supplies for their loarticular items. 



The adoption of this plan v/ill not increase the 
clerical work: in the Business Manager's office; in fact i1 
VYill decrease the label; in the tabulation of the bids. 



- 18 - 

Once the classification is adopted, it will be a simple 
matter for the department heads to submit their requisi^ 
tions accordingly, and for the purchasing agent to prepare 
them for transmission to vendors. These proposals may be 
mimeographed as at presents 

It is believed that by combining all supplies 
of a like nature on one proposal, quantity buying v?ill be 
extended and a proportionate reduction in price may be 
obtained. 
3. Contract for supiolies 

The various committees pass upon the bids for 
supplies coming within their respective Jurisdiction, and 
after being approved by the Board of Education and the 
Mayor, contracts are let* 

These contracts are good. They are continuing 
price agreements which give the Board of Education a 
standar'd wholesale price for the entire year, without bind- 
ing it to purchasing a definite quantityi. 
4., prices secured 

In verifyihg prices paid by the Board of Educatioi 
for all kinds of supplies it was found that the prices were 
low, 
5. Issuing drders 

As the occasion demands during the year, orders 
are placed against contracts or price agreements made at 
the beginning of the fiscal year. These orders are passed 






'« ■Qr<"«:ffi<!frffc 






qif aasq; s•^9C^d■ir^ai00 800 r.' , 
etf.?:+09r89'x 'rrs.rit rtiii-txw gnxrac: 



''iCC^ Stft fi 



■:?-30trr>- " rso^ 






,v.&rti3f 






- 19 - 

by the committees and by the Board of Education before 
being issued, a practice ?;hich entails loss of time and an 
unnecessary expenditure of money. The first is occasioned 
by the delay involved in waiting for approval of the Board 
of Education and the preventable outlay in money is due 
to the printing in the proceedings of all the orders ap- 
proved by the Board of Education. 

It is recemraended that this superfluous practice 
be discontinued because after the Board of Education a""j-- 
proved the price agreements v/hich govern purchases for thb 
whole year, and the placing of orders is an administrative 
detail which belongs properly to the Business Manager. 

In connection with the consideration by the 
Board of all the orders issued is the question of printing 
all such orders in the ;:)roceodings. During the year ending 
June 50, 1916, 43 pages of the proceedings at $2,60 "per 
page were consumed with printing the orders placed against 
contracts made at the beginning of the year. This print- 
ing is a needless expenditure of money, The proceedings 
are used by the accounting division, and by the clerk in 
the storehouse #hen checking up 'invoices and deliveries 
but for this purpose a carbon copy of the order V7ill serve 
as well. 

It is suggested also that in making purchases of 
articles for v/hich price agreements are not in force, the 
Board of E3.ucation decide upon a minimum amount to be con- 
sidered and approved by the Board, and that below this mir,i- 



- 20 - 

mum the Business Manager be allowed to make the piarchase 
upon his own responsibility and initiative. The Board can 
insure proper expenditure thru periodic financial reports 
which will be dealt with in connection with the accounting 
procedure. 

To prevent overdrav/ing of an appropriation it is 
recommended that before any order for supplies, materials 
or equipment is issued, ghe Business Manager certify on 
one copy of the order to the effect that there are suffic' 
unencumbered funds in this appropriation to meet the lia- 
bility incurred; that no orders be issued unless there are 
adeuqate unencumbered funds in the appropriation at the 
time of issuance. 

The mattsr of the order form, the number of 
copies desired and the routine of issuing orders and check- 
ing deliveries will be taken up with the Business Manager 
and worked out with him in the actual installation of a 
recommended procedure, 
6» Checking use o:f su p plies 

The Business Manager promotes an efficient use 
of supplies and checks consumption b.y publishing t?/ice a 
year a "Comparative Statem.ent of the Cost of Text Books 
and Supplies sent to Schools iipon Requisition" and a "Com- 
parative Statement of Cost of Engineers' and Janitors' 
Supplies Sent to Schools upon Requisition". In addition 
to these the Business Manager receives monthly comparative 
statements. 



- 81 - 

Current checks upon consumption will be furnished 
■by a requisition from principals which carries the quantitie; 
on hand of the requested commodity and the quantity used . 
during the periods covered iDy requisitions; by the employ- 
ment of the proposed stores records which will furnish de- 
■tailed data of consumption records for each school, for 
each kind of activity can be obtained and from which the 
per capita cofet f-^r supplies for various branches of 
education fean be ascertained. These controls are bain^- 
developed nov/ in the accounting division, 

PAYMEFT OF BILLS 

In spite of the fact that the Bo^rd of Education 
meets its financial obligations promptly, the minimum 
amoimt of time necessary for the payment of a bill is two 
weeks. This is due to the fact that the procedure of pay- 
ment is governed by the charter which provides that both 
the Board of Education and the Ilayor raiist approve all 
claims before a payment is made. Discounting bills is 
therefore j)recluded under these conditions. 

A charter amendment -providing for payment vd thout 
the approval of the J/Ia^^'or is desirable. If the provision 
of a city charter requiring that an affidavit of the vendor 
be affixed to each invoice before -payment be made reading 
to the effect that this claim is valid and the goods ha.ve 
been delivered etc, were eliminated the procedure for the 



-r.h 



-f cn»-rf;e 



- 22 - 

payment of bills would be expedited. The requirement of an 
affidavit lends nothing- of importance to the city in that 
nearly all cases a minor clerk performs the perfunctory 
duty and swea;rs to the affidavit before the vendor. 

CBHTRAL STORES 

Organization 

Under the rules of the Board of Education, the 
Business Manager shall keep in charge and asistribute, on 
proper requisition, all free text books and school supplie 
He shall have charge of all janitors' supplies and deliver 
them to the school buildings on a requisition properly 
Signed by the principal. He shall keep an account with each 
school, shov7ing all the ±tems of expenditure thereon, except 
tuition. 

Carrying out the provisions of this rule the Board 
of Education maintains at the Washington School a store 
room where were received, stored an* issued approximately 
^75,000 ../orth of educational, janitorial and engineers' sup- 
plies. To handle this amount and to keep recording accounts 
of the same, the followni.s' organization is employed: 



- 23 - 



Present Staff 



1 clerk, book room 

1 asst. clerk, book room 

1 clerk, supply room 

5 clerks, Accounting Dept. 

$900.00 each 
1 driver, team 
1 driver, auto truck 
1 liiborer, (^2,75 per day 



Staff begin- 
ning July 1, 
1917 



Sl65O.0e per year $1680,00 
" 960,00 
" 1200.00 

" 2 '700. 00 

" 8040.00 
" 853.00 
II 

$8433.00 



1100.00 " 

1200.00 " 

4500.00 " 

1000., 00 " 

1000.00 " 

858.00 " 

^11333.00 



The clerk of the book room or storekeeper iR as- 
sisted in the actual stock keeping and s"'"/;3ok issuing 
functions by two assistaat clerks and a laborer. The 
clerk'?, own duties consist mainly in checking of price ex- 
tensions on the invoice and in approving invoices for pay- 
ment, functions which are du.plicated in the main accounting 
office and in the stores accounting office. In addition to 
these duties the clerk verifies d.eliverieB against purchase 
orders, reporting of shortage of stock to the Business 
Manager for repurchase, and v.'hen necessary, in filling re- 
quisitions of supplies for schools. 

Inasmuch as the proposed centralised accounting 
procedure will relieve the d-uties, leaving to him only the 
approval of invoices in so far as the delivery of goods is 
concerned, it is suggested that this clerk in addition to 
his duties as storekeeper, be designated purchasing agent 
of the Board, in accordance vd th the recommendations in 
a previous section of "Ghis report. To assist him in the 



- 24 - 

v^ork of preparing proposals for bids, makins out oMers, 
etc., it is suggested that he he given a stenographer, 
one from the Business Manager's office. This can he done 
without handicapping the stenographic and clerical work 
of the Business Manager, because all matters relating to 
purchasing will under this ari-angement be taken out of 
the Department of Stenographers. 

Beginning July 1, 1917, the number of clerks in 
the Accounting Department of the store house will be re- 
duced from five to three, but with the introduction of im-- 
proved accounting methods it will be possible to maintain 
more complete records than at present, in spite of the 
deduction in personnel. This matter is taken up fully by 
the accountant of the Bureau. 

The rest off the staff at present consist of two 
assistant clerks or stockkeeper, one laborer and two drivers. 
It is suggested that with the introduction of monthly 
instead of weekly deliveries to the schools, that one driver 
and vehicle be turned over to the Chief Engineer's division, 
and that the stockkeeping and filling requisitions be car- 
ried on by one assistant clerk and laborer instead of two 
clerks as at present. 
Deliveries to Schools 

Deliveries are made weekly. From a study of the 
loads delivered over a three months period, - October, 
November, December, 1916 - it v/as found that the vehicles 



- 25 - 

are not iixxed to capacity. It is therefore recommended 
that monthly deliveries of supplies he made, a plan which 
will reduce record keeping and deliveries l^'^o. 
Stores Records 

The whole question of the stores system and ac- 
counting records are being worked out no?/ with the Business 
Manage r. 

ImprovemiSnts are heing made which v>/ill furnish 
control of consumption of supplies, checks on deliveries, 
and will make available data and statistics which should 
aid materially in more effective expenditu.re and planning 
expenditures. 

REPAIRING OP EQUIPMBMT 

Repairing Books 

The Board of Education is allowed 1^^5,000 for 
1917-18 for repairing, books, in 1916-17 |)4,000 V/as allowed. 
All ^ooks costing %Qi(f. or more are reboind, badly mutilated 
pages being replaced by good pages from discarded books, I: 
found v/orth while, books costing less than 50{i are also 
rebound. 

All books are returned to the store room, and thei 
inspected by feirls employed for the purpose. It is sug- 
gested that costs be kept on this work, in order to ascer- 
tain whether the results are justifying tha expenditure. 



.. D>Siir a i 



- 26 - 

EeDairiiiR Qlsher Equipment 

Thruout the school yee.r and during the suimier, 
broken and hadly used up equipment, such as clocks, com- 
passes, glohes, maps, etc., are repaired by one of the 
clerks. 

The suggestion given above relating to cos t 
records, applies also in this instance. 



'■iiiiiilL 

0021 324 802 9 



